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What would you pay for a bond that is trading today with a yield-to-maturity (ytm) of 6%, an annual coupon rate of 7.5%, pays its
What would you pay for a bond that is trading today with a yield-to-maturity (ytm) of 6%, an annual coupon rate of 7.5%, pays its coupons semi-annually, and matures in 10 years? Its face (par) value is $1000.
| a) $1,110.40 | ||
| b) $1,111.58 | ||
| c) $895.78 | ||
| d) $897.04 |
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